b. Determine if Pat’s AMT exemption will be limited.
His tentative exemption of $[removed] is phased out at a rate of 25 cents on the dollar when AMTI exceeds $[removed].
If required, round amounts to the nearest dollar.
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Problem 11-52 (LO. 2, 3, 7)
Five years ago Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2015, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows:
Gerald holds no suspended at-risk or passive activity losses at the beginning of 2015.
If an answer is zero, enter “0”.
d. Assuming Gerald has $50,000 income in 2017, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald’s suspended passive activity losses at the end of 2017 under the at-risk rules and under the passive activity loss rules?
Under the at-risk rules: $[removed]
Under the passive activity loss rules: $[removed]